Landlords hit out at ‘council money-maker’

Oct 19 2009 by Amy Hunt, The Journal

COUNCIL bosses in Newcastle were accused last night of making money out of a landlords’ licence designed to protect tenants.

Landlords in the city have to pay £1,100 for each House of Multiple Occupancy (HMO) which they want to let.

Over the water in Gateshead the price for a licence is just £600 for accredited landlords, while councils in other parts of the country charge as little as £250 for a licence.

Newcastle City Council has denied it is using licence fees as a revenue earner, but landlords say they deserve to know where their cash is going.

Regulations were introduced in 2006 requiring private landlords renting out homes with three or more storeys and occupied by five or more people to have an HMO licence.

It imposes certain conditions on bathroom and kitchen standards, to guarantee tenants good accommodation, as well as fire safety measures.

Councils also check landlords’ criminal and financial records. Dominic Robinson, the Tyne & Wear representative of the National Landlords’ Association, said: “We feel the council is quite anti-landlord. Most landlords are trying to provide very good quality accommodation and are investing in our properties yet we feel we’re being penalised.

“The private rented sector plays an important role in providing housing in Newcastle and the city’s reputation as a university city is partly based on that. It would be nice to have some evidence of what the money we’re paying is being used for.” Stephen Savage, director of Regulatory Services and Public Protection for Newcastle City Council, said: “The city council has more than 40,000 students and 1,450 licensed HMOs, the second highest in the UK.